104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly will reconvene next week for the first of two weeks of Veto Session, scheduled for October 14 to 16 and again from October 28 to 30. And while the agenda is still being finalized, several key issues seem likely: transit funding, energy affordability, the implications of the federal budget reconciliation package, and proposals on immigration enforcement in Illinois. Given that the Veto Session lasts only six days and bills with an immediate effective date require passage by a supermajority, resolution on some of the more complex and controversial topics may be postponed until January, when the requirement for passing legislation with an immediate effect will revert to a simple majority in both chambers.
The House scheduled several subject matter hearings:
10/10/2025 1:00 PM – Revenue & Finance Committee **** Changed ****
Virtual Room 1 – www.ilga.gov – Springfield, IL
Subject Matter: Property Tax: HBs 1614,1812,1818,1829,2996; SB 215
10/14/2025 2:00 PM – Judiciary – Criminal Committee
Room 118 and Virtual Room 2 – Capitol Building – Springfield
Subject Matter: Wrongful Home Raids and No Knock Warrants: The Anjanette Young Act and the History of Trauma Associated With Law Enforcement Errors
10/14/2025 4:00 PM – Cities & Villages Committee
Room 118 – Capitol Building – Springfield
Subject Matter: SUBJECT MATTER: HB 3656
10/15/2025 8:00 AM – Executive Committee
Room 118 and Virtual Room 2 – Capitol Building – Springfield
Subject Matter: RTA Fiscal Cliff
10/16/2025 8:00 AM – International Relations, Tourism, and Trade
Room 118 and Virtual Room 2 – Capitol Building – Springfield, IL
Subject Matter: Nationwide Tariff Policies: How Illinois Can Respond and Lead
Meanwhile, the Senate has one hearing currently scheduled for next week:
10/15/2025 9:30 AM – Pensions
Room 409 – Capitol – Springfield
Subject Matter: SB 1893
GOVERNOR’S HIGHLIGHTS:
Immigration Enforcement: Immigration enforcement escalated rapidly this week. The president deployed Texas National Guard troops to Illinois as part of an immigration enforcement operation in the Chicagoland area. The federal government also activated the Illinois National Guard to support its operation.
Illinois officials quickly challenged the deployment in federal court, though a judge declined to issue a temporary restraining order on Monday. Instead, she “strongly urged” the Trump administration to pause the sending of troops to Chicago and gave the Department of Justice until the end of Wednesday to respond to the state’s lawsuit. At Thursday’s hearing, the judge sided with the state and issued a temporary restraining order, saying her decision comes down to a “credibility determination.”
Responding to the federal action, Governor JB Pritzker promised that the state will utilize “every lever at our disposal to resist this power grab,” citing the planned deployment as an “invasion.”
On October 8, President Trump called for the jailing of Chicago Mayor Brandon Johnson and Illinois Governor JB Pritzker — both Democrats. Trump accused the two of “failing to protect” Immigration and Customs Enforcement (ICE) officers sent to Chicago. The White House did not specify which laws Trump believes they have violated.
There are some signs the Legislature might address some immigration-related issues during the veto session, with Speaker Welch having mentioned (at an unrelated event) that he is working with the Latino Caucus and Democratic members on the state’s legislative options to counter what Welch perceives as the federal government’s hostile stance.
Read more about this week’s immigration enforcement here, here, here, and here.
GOMB Releases Annual Fiscal Policy Report: The Governor’s Office of Management and Budget (GOMB) released the annual Illinois Economic and Fiscal Policy Report, outlining the state’s long-term fiscal outlook. The report provides a multi-year perspective on the projected long-term impact of current federal policies on Illinois’ budget.
The current fiscal year is projected to run a deficit of $267 million, and the Governor’s Office of Management and Budget (GOMB) is recommending taking immediate action to address this shortfall. The situation is expected to worsen in the following year, with a projected deficit of $2.2 billion.
According to GOMB, the “Big, Beautiful Bill” will result in a loss of $587.2 million in corporate income tax receipts and an additional $249 million in individual income tax receipts this fiscal year. The most significant impact comes from a change that accelerates research and development expensing, which accounts for approximately $320 million of the total loss, according to GOMB.
The governor’s budget office is urging the legislature to take immediate action to amend state law to decouple from the new “bonus depreciation” law, which will result in a loss of $121 million in corporate income taxes and $23 million in individual income taxes. Additionally, GOMB is requesting that the General Assembly update state law to account for the federal change from Global Intangible Low-Taxed Income (GILTI) to Net Controlled Foreign Corporation Tested Income (NCTI), which would affect corporate taxes by $90 million. See here.
NANO Nuclear to Establish Operations in Illinois: Illinois will be home to a new manufacturing and research facility, Governor Pritzker announced, joined by the Illinois Department of Commerce and Economic Opportunity and NANO Nuclear Energy Inc. In all, NANO Nuclear Energy — supported by the REV Illinois program — will invest over $12 million to launch operations and create 50 full-time jobs. The company recently acquired a nearly 24,000-square-foot facility in the Chicagoland area, which includes a 7,400-square-foot demonstration space. The site’s goals: to support nuclear engineers, manufacturers, and researchers in collaboration with the University of Illinois Urbana-Champaign in developing the KRONOS MMR™ Microreactor Energy System.
Pasqal to Establish U.S. Headquarters in Illinois: Pasqal, a leader in quantum computing, will establish its U.S. headquarters at the Illinois Quantum and Microelectronics Park in Chicago. The move – expected to create 50 full-time jobs and reflecting a $65 million investment – is supported by the Manufacturing Illinois Chips for Real Opportunity Act. A quantum processing unit will be part of the facility too. Pasqal has also secured a $15 million loan from the Illinois Finance Authority to aid the project. Read more here.
IL Department of Revenue Issues Notice of New Scam: The Illinois Department of Revenue alerted taxpayers to a nationwide text message scam involving fraudulent messages that appear to originate from state revenue or treasury agencies.
Using unsolicited text messages, the phishing scheme claims a tax refund has been processed. Recipients are asked to provide or verify personal banking information and are warned that failing to do so may result in losing a state refund. More here.
Tourism Grants: Some $4.4 million in tourism funding is being announced by the Illinois Department of Commerce and Economic Opportunity. Three grant programs will provide the monies: the Tourism Attraction Grant Program ($1.8 million), the Tourism Private Sector Grant Program ($600,000), and the Tourism Marketing Partnership Grant Program ($2 million). The grants are to address various goals, including developing and enhancing tourism attractions, supporting events and festivals, and promoting destinations in Illinois. Grantees will be chosen via a competitive application process. Read more here.
State Board of Health: Governor Pritzker appointed Jeffrey Workman to the State Board of Health. The new SBH member brings 34 years of experience as head administrator in the Clay and Effingham county health departments. Workman has served on various boards, including the Higher Expectation Food Pantry, Clay City Consolidated School District, Illinois Public Health Association, and Public Health Practitioner Certification Board. He holds degrees in business from Olney Central College and Eastern Illinois University.
OTHER NEWS:
2026 Election Update:
2nd Congressional District: Former Congressman Jesse Jackson Jr. is running again for his old seat. The district is currently represented by Congresswoman Robin Kelly, who is running for the U.S. Senate. Jackson left office in 2012 after being convicted of misusing campaign funds. He faces a crowded Democratic primary field that includes State Senators Robert Peters and Willie Preston, Cook County Commissioner Donna Miller, Water Reclamation Board Commissioner Yumeka Brown, management consultant Eric France, policy expert Adal Regis, and community engagement expert Jeremy Young.
94th House District: Josh Higgins, a U.S. Air Force veteran and West Central School Board member, has announced he will challenge Leader Norine Hammond in the Republican primary in the 94th District. The crop insurance agent is backed by failed Republican Attorney General candidate Tom DeVore.
97th House District: Representative Harry Benton will face Republican challenger Gabby Shanahan; he defeated her in 2024.
Transit Fiscal Cliff: Just two weeks before the Fall Veto Session, the RTA provided an update on the transit fiscal cliff last Friday. Info provided by the RTA is here. ; see also here.
Nicor Gas Rate Increase: An Illinois Commerce Commission panel recommended on Monday that the regulatory agency approve a rate hike for Nicor Gas — but at a rate less than the utility requested. The administrative law judge suggested cutting $109.8 million from Nicor’s proposed $314.2 million increase, bringing it down to about $204.4 million.
The ICC will make a final decision in November. If approved, this hike would raise average gas bills by about 9%, or over $7 a month, contributing to total increases exceeding $1 billion in less than a decade.
The proposed rate increase would primarily affect delivery charges, which make up about half of residential gas bills. Read more here. The full opinion is here.
Election Law Challenge: The U.S. Supreme Court will hear Congressman Mike Bost’s appeal challenging Illinois’ mail-in voting law, which he claims violates federal law by allowing ballots to be counted after Election Day. Lower courts dismissed the case for lack of legal standing. The Supreme Court will decide whether Bost can challenge state election laws as a candidate, a ruling that may influence future election lawsuits.